What does this new information mean to me if I’m trying to lower my energy bill?
We here at More Savings know the last 18 months have been incredibly difficult for many households and businesses who are battling against the cost of living crisis. This August, another spanner is being thrown into the works.
Ofgem have announced that its price cap will be reviewed and updated every 3 months instead of the previous every 6 months. This drastic change means the Ofgem price cap is expected to rise more frequently than ever before, which could land struggling households in trouble. With the cost of living increasing by the day, many households are forced to ask the questions – What does this new price cap mean for me and can I still lower my energy bill enough to avoid debt?
Understanding Ofgem
Ofgem is an energy price cap launched in January 2019 by Watchdog. It has been a saving grace in keeping prices stable and fair, and making sure energy companies are not making excessive profit.
With the cost of living increasing, Ofgem has been forced to change the frequency of review from every 6 months to quarterly, meaning bills could rise much higher and at a faster rate than ever before. This is due to a record rise across the globe of energy prices forcing energy suppliers to exit the market.
Since the start of 2021, 31 energy companies have stopped trading. This has left over two million customers scrambling to the next supplier and forced Ofgem to introduce new procedures to make sure the price cap reflects the changing times.
Many Brits are worried the new price cap will only make a bad situation worse, with many believing the more frequent price cap will only plummet households and businesses into debt this winter.
When does this come into play?
The next Ofgem price cap review is set for October 2022 where prices are predicted to rise by 82%. This percentage is expected to climb even higher as Britain enters the ever expensive and cold winter months.
Can I still lower my energy bill with this new price cap?
The Ofgem price cap applies to those on a default energy tariff or if you pay by direct debit, standard credit or a prepayment meter. This is around 15 million households.
This means around half the population of the UK will be directly affected by the new plan.
It doesn’t apply to those on a fixed term energy tariff. However, it will affect these once your contract ends. Those on a fixed term tariff will most likely be hit hard with a considerable difference in bill prices once their contract ends.
Finding good gas electric and broadband deals will be on everybodys to do list sooner or later.
More Savings is here to help.
How can I lower my energy bill? More Savings has the answer.
More Savings can help you lower your bills, avoid debt and stay safe this winter by offering the cheapest variable energy tariff in the UK. With More Savings, you are eligible for the best insurance, mobile, gas electric and broadband deals the provider Utility Warehouse can offer.
Along with having the cheapest energy available in the UK right now, Utility Warehouse offers the best value fixed energy tariffs for customers who switch for 3 or 4 services. The fixed tariff guarantees to freeze your prices right until the end of June 2023. This means, when you switch to Utility Warehouse through More Savings, you’re able to avoid the 82% price cap increase expected for this October. You’ll also dodge the increase expected for January. Then again for April 2023!
There’s a reason Utility Warehouse is a multi award-winning supplier and has even been named “Energy Provider Of The Year 2022” during a global energy crisis by MoneyFacts. When you switch through More Savings, you can be assured you’re covered by a provider that’s recognised for caring.
In fact, Utility Warehouse cares about their customers so much, that they’re willing to reward you for switching to a smart meter. If you’ve ever needed the push to give one a try, this is it! With More Savings, if you are a new customer, you are eligible for this UW deal of a £50 reward for installing a smart meter.
Smart meters are a great way to lower your energy bill. They make sure you are only paying for what you actually use instead of a prediction of what you may use. With energy prices so high, nobody wants to be paying for energy they haven’t used. Smart meters measure what you use automatically, providing you with a precise bill of what you actually use, right to the last penny.
They’re also a great way of tracking what you use most energy on in order to learn where you may be able to cut down and save that little bit extra. These may be small changes such as:
1. Turn off appliances when you are not using them. Switch them off, and unplug.
2. Switch your old, incandescent light bulbs to LED ones. They’re more efficient and cost you less.
3. Wash and dry dishes by hand. Dishwashers use a lot of energy.
To see what other small habits you can pick up to lower your energy bills, read More Savings’ latest blog here – How can I lower my electric bill? 5 top tips to lower your energy costs this summer!
I am still struggling to lower my energy bill – What else can I do?
More Savings offers the best insurance, gas electric and broadband deals in the UK via Utility Warehouse. When you switch through More Savings, you are eligible for additional support and help if you are still struggling. Simply reach out to More Savings and we can get Utility Warehouse to provide all the advice and necessary support you need.
There is also other support available if your family is vulnerable or in debt. View the whole list of charities and advice lines here.
More Savings is dedicated to helping households and businesses find the best deals and lower their bills. Get in touch here to find out how we can help you in light of the new Ofgem price cap and what gas electric and broadband deals we have on offer right now.